Tuesday, May 26, 2015Tuesday, May 26, 2015

Indian police agency says may widen bank corruption probe

Published on Aug 4, 2014 11:53 PM

NEW DELHI/MUMBAI (REUTERS) - India's federal police agency said on Monday it could widen its corruption investigation after the arrest of Sudhir Kumar Jain, chairman of state-run Syndicate Bank Ltd over allegations he was seeking bribes to favour debtors.

The Central Bureau of Investigation (CBI) said on Saturday it recovered 5 million rupees (S$102,100) that a New Delhi-based company was allegedly paying via middlemen to the bank's head for a loan extension.

CBI spokesman Kanchan Prasad on Monday named the company as Bhushan Steel Ltd and said middlemen paid bribe money to Jain's relatives to win loan extensions after defaulting on repayment.

Bhushan Steel denied any wrongdoing and said it was in the process of taking appropriate "legal recourse". "Please note that our company is not involved in any manner with regard to the alleged payments and the same are denied and hence in our opinion would not have any material impact," the company said in a stock exchange filing.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!